Adapt IT shareholders will have to wait a little longer for Volaris Group’s acquisition offer circular, after the Takeover Regulation Panel granted the company an extension to evaluate the offer.
The local technology company has captured the interest of Canada’s Volaris, which announced its intention to procure 100% of the company on a R6.50 per share cash offer. Volaris’ offer came after one made by South African telecoms company, Huge Group, which is offering shareholders a share swap based on a reference price of R6.13 and an implied price of R5.52 per Adapt IT share.
In a statement on Friday, Adapt IT said it had appointed an independent board expert to provide an opinion on both the Volaris and Huge group offers. However, the expert is still in the process of finalising their opinion, which means Adapt IT’s independent board opinion will also be delayed.
The circular will now come by 4 June, instead of the initial date, which was anticipated to be by 31 March. In the meantime, Adapt IT’s share price closed the week at almost R7, which is higher than the Volaris R6.50 offer. But in an emailed response on Friday, Adapt IT said Volaris decides on the price of its offer and this doesn’t change with the JSE traded share price - neither is Volaris obliged to increase its offer.
"The current share price does not affect the Volaris offer. Shareholders will have the option to sell all or some of their Adapt IT shares or to retain their shares and stay invested should the Volaris offer be accepted by shareholders," said Adapt IT spokesperson Neeran Hewers.